Toronto, Ontario--(Newsfile Corp. - January 23, 2013) - Pure Nickel Inc. (TSX: NIC) announces results
from its 2012 exploration program at the MAN project, Alaska. This was the fifth
season that Pure Nickel’s joint venture partner, Itochu Corporation, has funded exploration. With this year’s
work program of US$4.2 million, Itochu has expended approximately US$21 million
on exploration of the property, and currently holds a 30% ownership interest.
The joint venture agreement allows Itochu to earn up to a 75% interest by
incurring US$40 million of exploration expenditures.

The work program included soil geochemical surveys (3,010
samples collected), detailed mapping, 48 line kilometers of IP (induced
polarization) geophysical surveys and 2,233 meters of diamond core drilling. The
program was designed to identify areas of potential magmatic Ni-Cu-PGE sulphide
mineralization at surface or at shallow depths. Drilling was used to test soil
geochemical and/or IP anomalies for the presence of sulphides in bedrock.

The work identified several new sulphide occurrences on the
Alpha complex, with a number of soil geochemical and IP anomalies still to be
tested. Of the eight drill holes completed, seven targeted soil or IP anomalies,
and one hole was drilled to investigate magmatic stratigraphy. Minor amounts of
magmatic sulphide mineralization were encountered in most of the drill holes,
but assay results from these intervals were generally not significant. In hole
PNI-12-063, however, highly anomalous Ni-Cu-PGE mineralization was intersected
across a significant interval. The hole targeted partially coincident IP and
soil geochemical anomalies in the southern part of the Alpha complex, and
returned an intersection of 80.95 meters apparent width grading 35 ppb Au, 106
ppb Pt, 174 ppb Pd (315 ppb Au+Pt+Pd), 0.17% Cu and 0.25% Ni from 146.55 meters
to 227.5 meters.

A limited gold prospecting program was also completed during
the summer to attempt to locate the lode source of the many placer gold
occurrences in the area. Results were encouraging, with one sample of glacially
transported material assaying 14.0 g/t Au and 4.6% Ni. The bedrock source of
this sample is unknown, but additional gold prospecting will be undertaken in
2013 in an attempt to trace the source.

The 2012 field season demonstrated the successful application
of multifaceted, field based work programs in locating sulphide mineralization
at or near surface. Numerous geochemical and geophysical targets remain to be
tested in 2013.

Jon Findlay, Ph.D., P.Geo is the designated Qualified Person
for this project.

About the MAN Property

The MAN project targets Nickel (Ni) – Copper (Cu) – Platinum
Group Element (PGE) mineralization in a series of mafic-ultramafic complexes
located approximately 260 km southeast of Fairbanks, Alaska. Four such complexes
are present on the property, Alpha, Beta, Canwell and Rainy. Sulphide showings
on the property have returned extremely high metal concentrations in grab
samples, including 2.0% Ni, 1.3% Cu and 2.4 g/t Au+Pt+Pd from the East Rainy
showing, 1.39% Ni, 0.48% Cu and 4.0 g/t Au+Pt+Pd from the Bird’s Beak showing,
and 6.7% Ni, 1.0% Cu and 1.5 g/t Au+Pt+Pd from the Tres Equis showing. Pure
Nickel Inc.’s work programs are currently focussed on identification of economic
deposits of disseminated to massive Ni-Cu-PGE sulphide mineralization in the
mafic-ultramafic complexes.

About Pure Nickel Inc.

Pure Nickel is a mineral exploration company with a diverse
collection of nickel, copper and platinum group element exploration projects in
North America. The Company is active on its flagship MAN property, and the Salt
Chuck property in the Alaskan panhandle, where a new gold discovery was recently
announced on December 11, 2012. In addition, the Company is actively pursuing
other, non-nickel properties in North America and overseas.

Forward-Looking Statements

Some of the statements contained herein may be forward-looking
statements which involve known and unknown risks and uncertainties. Without
limitation, statements regarding potential mineralization and resources,
exploration results, expectations, plans, and objectives of Pure Nickel are
forward-looking statements that involve various risks. The following are
important factors that could cause Pure Nickel’s actual results to differ
materially from those expressed or implied by such forward-looking statements:
changes in the world wide price of mineral commodities, general market
conditions, risks inherent in mineral exploration, risks associated with
development, construction and mining operations, the uncertainty of future
exploration activities and cash flows, and the uncertainty of access to
additional capital. There can be no assurance that forward-looking statements
will prove to be accurate as actual results and future events may differ
materially from those anticipated in such statements. Pure Nickel undertakes no
obligation to update such forward-looking statements if circumstances or
management's estimates or opinions should change. The reader is cautioned not to
place undue reliance on such forward-looking statements.

The TSX Exchange does not accept responsibility for the
adequacy or accuracy of this release.